A Temporary Increase in Government Purchases Would Cause

question 52

Multiple Choice

A temporary increase in government purchases would cause

• A)a leftward shift in the saving curve and a leftward shift in the investment curve.
• B)a leftward shift in the saving curve and a rightward shift in the investment curve.
• C)a leftward shift in the saving curve,but no shift in the investment curve.
• D)no shift in the saving curve,but a rightward shift in the investment curve.

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Definitions:

Directional Hypothesis

A hypothesis that specifies the direction of an anticipated difference or relationship between variables.

Nondirectional Research Hypothesis

An assumption indicating a link between variables, yet lacks details on the direction of their relationship.

Nondirectional Research Hypothesis

A hypothesis that predicts a relationship between variables but does not predict the direction of the relationship.

Directional Research Hypothesis

A hypothesis that specifies the direction of the expected difference or relationship between two variables or conditions.